Smash low rates with these ASX dividend shares

It is the first Tuesday of the month, which means the Reserve Bank of Australia will meet later today to discuss the cash rate.

According to the ASX, as at November 30, the ASX 30 Day Interbank Cash Rate Futures December 2018 contract was trading at 98.505. This indicates that the market has a 0% expectation of an interest rate increase to 1.75% at today’s meeting.

Looking further ahead, futures pricing reveals that the market is not expecting any change in rates until after April 2020 at the earliest.

In light of this, it looks likely that the paltry interest rates on savings accounts and term deposits will be here for some time to come.

But don’t worry because the share market has some quality dividend shares that offer significantly better yields.

Three that I like right now are as follows:

Dicker Data Ltd (ASX: DDR)

Dicker Data is a growing computer software and hardware wholesale distributor which I think is a great option for income investors. This year the Dicker Data board intends to increase its dividend to 18 cents per share, equating to a generous fully franked yield of 6.3% based on its last close price.

Rural Funds Group (ASX: RFF)

Rural Funds is an agriculture-focused real estate property trust which owns a portfolio of properties across different geographies and sectors. This year the Rural Funds board intends to lift its distribution to 10.43 cents per unit, meaning its units currently offer a forward 4.6% yield.

Westpac Banking Corp (ASX: WBC)

With its shares trading on lower than average multiples and offering a very generous yield, I think that Australia’s oldest bank could be a great option for income investors that don’t have exposure to the banking sector yet. At present its shares offer a trailing fully franked 7.1% dividend.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited and RURALFUNDS STAPLED. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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